Green Mortgages Can Help Home Owners Invest in Energy Efficiency Benefits

Sustainability and Green Building
Published

This post has been updated.

There's no question that COVID-19 has changed the way people live in their homes. An increase in telecommuting has led to a heightened interest in home offices and exercise rooms, including the overall needs of the home, such as energy usage.

Freddie Mac recently reported that "household electrical usage in late March was about 22% higher than in 2019," at the onset of stay-at-home orders, with midday consumption (between 10 a.m. to 3 p.m.) rising approximately 35%. Depending on local utility costs, this would equate to an approximate $25 increase in monthly utility bills in the month of April.

Some local utility companies in states such as California, Michigan and New York have asked consumers to moderate electricity usage as a result of this increased demand. To reduce energy consumption and utility bills, home owners may want to consider upgrades such as energy efficient appliances, heating, ventilation or air conditioning (HVAC) units, windows and doors, as well as the addition of air sealing, insulation, solar panels or geothermal heating.

Although any new purchases or upgrades may cause some to pause based on their current economic situation, energy or "green" mortgages can offer home owners an opportunity to purchase homes that utilize these technologies through mortgages that permit higher debt-to-income ratio requirements. Not only can such energy-efficient upgrades help decrease monthly utility costs, but a study released by Freddie Mac last year has also shown that such features and green-building certifications can increase a home's market value.

Builders and remodelers can utilize discussion points through Home Performance Counts, NAHB's collaboration with the National Association of REALTORS, to determine what energy-efficient features are most beneficial for their clients.

To stay current on the high-performance residential building sector with tips on water efficiency, energy efficiency, indoor air quality, and other building science strategies, follow NAHB's Sustainability and Green Building team on Twitter.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Student Chapters | Workforce Development

Jul 25, 2025

NAHB's Student Chapters Helped Give Her Confidence to Pivot Careers

Zhetique Gunn's early exposure to building and problem-solving has led to national recognition and a city-level impact as an urban planner in Washington, D.C.

Jul 24, 2025

Federal Court Upholds New York State Gas Ban

The federal court for the Northern District of New York on July 23 upheld New York state’s “gas ban” legislation. New York’s legislation is the first statewide law that restricts natural gas use in new buildings, effectively banning gas stoves and other fossil fuel appliances in most new construction starting in 2026.

View all

Latest Economic News

Economics

Jul 25, 2025

Market Share of 5,000+ Square Foot New Homes Started Declines in 2024

In 2024, there were 24,000 homes that exceeded 5,000 square feet, equating to a 2.3% market share of all new homes started. Both the number and market share for 5,000+ square foot homes experienced declines from 2023, according to the annual data from the Census Bureau’s Survey of Construction (SOC).

Economics

Jul 24, 2025

New Home Sales Hold Steady at a Relatively Tepid Level

Challenging affordability conditions, elevated interest rates and economic uncertainty continue to act as headwinds on the housing sector as many potential buyers continue to stay on the sidelines.

Economics

Jul 23, 2025

Existing Home Sales Retreat to 9-Month Low

Existing home sales fell to 9-month low in June as home prices hit another monthly record high, according to the National Association of Realtors (NAR). Sluggish pace of sales suggest that higher mortgage rates and elevated home prices are continuing to sideline buyers, despite improved inventory conditions.